[This Document is the Property of His Britannic Majesty's Government, and should be returned to the Foreign Office if not required for official use.]
TU:
JAPAN.
Cypher telegrain to Sir R. Craigie, (Tokyo).
Foreign Office.
No. 9.
January 10th, 1939.
10.30.p.m.
64
(1)
Shanghai telegram No. 1192 to you [of the 21st: Chinese request for permission to assemble aircraft factory at Rangoon ].
Similar request with regard to Hongkong was turned down in October 1937, it being decided that Hongkong should behave as though a state of war existed; as Your Excellency is aware, a neutral is forbidden to allow the export to a belligerent of military aircraft in assembled state. Considerations leading to this decision were that Japanese might establish aerodromes just outside British territory in order to intercept aircraft or even boinb assembly plant, and that as a result fewer aircraft might in the long run reach China than if they travelled in unassembled state.
2. These considerations appear to have less force in present case owing to distance of Burma from operations in China, difficult terrain of frontier and extreme difficulty of sending aircraft unassembled by road. On the other hand acceptance by His Majesty's Government of Chinese request might be regarded by Japan as giving direct military assistance to China. What is your estimate of probable Japanese reactions?
Repeated to Shanghai No. 26, Rangoon unnumbered and Mission Chungking No. 3.
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